Inspiring People to Live at Full Volume

Skullcandy

Customer Snapshot:Overview

99% shipment accuracy to our customers

From their start in Park City, Utah, today Skullcandy is a global brand that is able to Run Live and bring the noise and push boundaries far and wide. Skullcandy turned to SAP Business ByDesign to Run Simple to help them manage inventory as well as to plan and forecast much better.

Hell bent on turning the headphone game on its head and shaking some sense into a tired industry stuck in its monochromatic ways, Skullcandy’s commitment to counterculture and self-expression scratched the audio itch of core up-and-comers and underdogs that nobody else could reach.

Customer Snapshot:History

Pushing Human Potential Through the Power of Music

Rick Alden had a simple but powerful idea -- what if there were headphones that could seamlessly switch from music to calls? And what if those headphones actually looked as good as they worked? That idea was the bedrock Skullcandy was built on.

Skullcandy started in Park City, Utah, but since then they’ve expanded to San Francisco, London, Mexico City and Shanghai with about 330 employees around the world.

2003

Rick Alden founds Skullcandy in his basement in Park City, Utah.

2004

First product pairing. Skullcandy integrates their headphones into a snowboard helmet.

2004

First exhibition. People said, “Oh yeah, I’ve heard of Skullcandy. I’ve got a helmet that has audio in it and a little mate powered by Skullcandy on the back.”

2005

First financing. Skullcandy recruits angel investors who are excited about the company’s vision

2006

First bank financing. The company convinces a bank that it is worthy of a business loan.

2006

First national staging. Best Buy, the world’s largest electronics retailer, buys Skullcandy headphones.

2008

The company’s IT grows up when it implements SAP® Business ByDesign.™ The result: a highly scalable infrastructure, making the company more process-oriented with better supply chain visibility.

2011

Skullcandy’s IPO raises $150 million by offering 8.3 million shares to the public.

Prior to us coming into the marketplace you could have headphones in any color you wanted…as long as it was black.

We were really that first brand that brought color and energy within the consumer electronic market space.

Customer Snapshot:Business Model

Push the Boundaries

Helping people do amazing things even better.

Skullcandy wants to create amazing experiences with all that’s out there whether it’s virtual reality, to new theater to different experiences that comes along with new technology.

Customer Snapshot:Success Strategy

Everything’s at Full Volume

Live Life at Full Volume.

Redefining how people think about their audio.

The brand really connects with the consumer.

I don’t think anyone does it better than we do.

The Challenge

We Take Audio Products and Incorporate Them into People’s Lives.

Being able to ship timely and accurately was a major logistics hurdle.

The major complexity was getting the execution of the orders to be done smoothly – a process that can get very hectic.

Enter SAP

Turning up the Volume with SAP

Getting product where it needs to go, when it needs to be there.

Enter SAP:The SAP Experience

Perfect Harmony

SAP helps Skullcandy continue to grow and be an even more consumer product focused company than they are today.

About 77% of the transactions that run through SAP Business ByDesign for the order to cash process are completely hands off.

Better Business

Making Business Sing is Simple

Skullcandy is a leading performance audio brand, taking audio products and incorporating them into people’s lives. If they can’t get the product where it needs to be, when it needs to be there, then it will affect their bottom line. SAP provided the catalyst to help them scale the business out and operate in over 80,000 doors globally.

On a daily basis they’re using real-time data to improve strategy.

Better Business:Benefits

Insights to Help Skullcandy Go Out & Win

With SAP Business ByDesign, Skullcandy is able to ship timely and accurately, which is a major logistics hurdle when you’re managing a business that’s touching almost 80 countries globally.

SAP helps Skullcandy grow and drive the brand.

We have about a 99% shipment accuracy to our customers

Now about 77% of the transactions that run through SAP Business ByDesign for the order to cash process are completely hands off and they have about a 99% shipment accuracy to their customers. SAP Business ByDesign is providing that template that Skullcandy can use to manage the complexity of a growing, global business in as simple a way as possible.

SAP sets the stage to have finances and inventory in order.

SAP Business ByDesign is critical to efficiency and the ability to predict what’s going to happen in the market.

Better Business:Run Simple

To Run at Full Volume, You Have to Run Simple.

Really being able to innovate with speed for their consumer is key. Skullcandy wants to redefine how people think about their audio.

Ultimate Analytics. Anywhere.

SAP allows Skullcandy to take data points like what’s trending to how different regions are doing from around the world.

Data from around the world drives innovation for Skullcandy.

Journey Ahead

From Gritty Underdog to Leading the Pack

SAP reduces the complexity that naturally comes about from a growing global brand like Skullcandy.